Soreide Law Group Files FINRA Arbitration Against FIRST ALLIED SECURITIES

Soreide Law Group has filed a FINRA arbitration on behalf of our client (Claimant) against:

FIRST ALLIED SECURITIES, INC. (Respondent)

The Claimant, who resides in Kentucky, maintained an investment relationship with the Respondent and its Financial Advisor, Christopher Douglas Risher (Chris Risher) CRD#: 4325125.  Chris Risher has not been named in the lawsuit.  FIRST ALLIED SECURITIES and Risher allegedly solicited the Claimant to invest in several non-traded REITs, including the Northstar Healthcare REIT and Phillips Edison REIT. The Claimant was allegedly advised that the investments were safe and would pay a steady income.

The lawsuit alleges FIRST ALLIED SECURITIES failed to adequately advise the Claimant regarding the risk of these recommendations, and the high commissions that the Respondent and Risher received for selling the REITs. Allegedly, Chris Risher sold REITs to many of his clients, and despite ongoing risks, the lawsuit alleges he advised the Claimant to continue to hold the REITs.

The lawsuit alleges that the Claimant has suffered significant damages of at least $55,000 during a time when the financial markets have enjoyed record returns.

The lawsuit alleges:  negligence, breach of fiduciary duty, negligent supervision and breach of contract.

FINRA issued a reminder to members offering Non-Conventional Investments such as REITs and other alternatives of their obligations to:

(1) conduct adequate due diligence to understand the features of the product;

(2) perform a reasonable-basis suitability analysis;

(3) perform customer-specific suitability analysis in connection with any recommended transactions;

(4) provide a balanced disclosure of both the risks and rewards associated with the particular product, especially when selling to retail investors;

(5) implement appropriate internal controls; and

(6) train registered persons regarding the features, risks, and suitability of these products.

According to FINRA’s BrokerCheck, Chris Risher has been in the securities industry for 18 years and was listed with 6 firms.  He is currently not registered.  The following are the most recent firms he was registered with:

01/21/2014 – 01/08/2019  FIRST ALLIED SECURITIES, INC. – LOUISVILLE, KY

07/18/2012 – 01/24/2014  PRIVATE CLIENT SERVICES, LLC – LOUISVILLE, KY

03/16/2009 – 07/26/2012  MML INVESTORS SERVICES, LLC – LOUISVILLE, KY

If you’ve experienced financial losses, particularly in REITs, due to the recommendations or actions of Chris Risher, formerly of FIRST ALLIED SECURITIES of Louisville, Kentucky, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possibility of recovering your investment losses at:  888-760-6552. 

Soreide Law Group operates on a contingency fee basis and we represent our clients nationwide before FINRA.

2019-03-01T18:39:28+00:00March 1st, 2019|

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